FRANKFURT (Thomson Financial) - Deutsche Telekom AG said its workers have voted to end their strike and accept a compromise over the company's plans to outsource 50,000 jobs.
Last week, Deutsche Telekom reached an agreement with union ver.di to cut pay for service personnel by 6.5 pct by end-2010 and increase working hours to 38 hours a week from 34.
The wage agreement was accepted by ver.di members late Friday.
Under the agreement Deutsche Telekom will guarantee there will be no redundancies until end-2012.
The telecommunications giant said that the compromise puts the company on track for its planned savings of 500-900 mln eur a year from 2010 onwards and it will be able to retain 50,000 workers.
As many as 15,000 workers went on strike from May 11 to protest against Deutsche Telekom's plans to transfer employees to its newly formed T-Service unit from July 1 in a bid to save up to 900 mln eur a year. Tyler.Sitte@thomson.com ts/ro COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.